--- title: "Odisha seeks nod to divert forest land for Tata Steel iron ore block" type: "News" locale: "en" url: "https://longbridge.com/en/news/280911931.md" description: "The Odisha government has requested the Centre's approval to divert 216.875 hectares of forest land in Keonjhar for Tata Steel's Gandhalapada iron ore block. This proposal aims to support Tata Steel's expansion plans to increase crude steel production capacity from 19 MTPA to 40 MTPA by 2030, requiring around 66 MTPA of iron ore. The project, with an estimated cost of Rs 125 crore, is expected to create direct and indirect jobs and enhance revenue through various contributions. The proposal is pending clearance from the Ministry of Environment, Forest and Climate Change." datetime: "2026-03-29T05:27:29.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280911931.md) - [en](https://longbridge.com/en/news/280911931.md) - [zh-HK](https://longbridge.com/zh-HK/news/280911931.md) --- # Odisha seeks nod to divert forest land for Tata Steel iron ore block The Odisha government has approached the Centre seeking approval for diversion of 216.875 hectares (ha) of forest land in Keonjhar district for exploration of the Gandhalapada iron ore block allotted to Tata Steel Ltd. In a formal proposal (reviewed by _Business Standard_) submitted to the Union Ministry of Environment, Forest and Climate Change (MoEF&CC), the state's Forest, Environment and Climate Change department has sought clearance under Section 2(1)(iii) of the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980 for granting a mining lease over forest land within a total lease area of 241.1 ha under Keonjhar forest division. Of this, 216.87 ha, including 4.21 ha earmarked as a safety zone, fall under forest category, while the remaining 24.22 ha comprise non-forest land. The proposal assumes significance as Tata Steel aims to nearly double its crude steel production capacity from 19 million tonnes per annum (MTPA) to 40 MTPA by 2030. To support this expansion, the company will require around 66 MTPA of iron ore, which it plans to meet largely through captive mining. At present, its existing iron ore blocks produce about 32 MTPA to feed its facilities at Jamshedpur, Kalinganagar, Meramandali and other units. The Gandhalapada block, located under Barbil tehsil in Keonjhar district, was auctioned by the Odisha government in 2021, with Tata Steel Mining Ltd, now amalgamated with Tata Steel, emerging as the preferred bidder. The company has already paid Rs 122.41 crore as the first instalment of upfront payment and received a letter of intent (LoI) for a 50-year lease. Sources said geological assessments by the Geological Survey of India (GSI) have estimated iron ore resources in the block at 314.37 million tonnes at the G2 exploration level. The ore quality ranges between 45 per cent and 69 per cent iron content, with an average grade of 60.5 per cent, making it commercially viable. As per the approved mining plan, the project proposes an initial production capacity of 10 MTPA (run-of-mine), with an estimated mine life of 33 years, likely to extend after detailed exploration. The company plans to undertake further drilling to upgrade reserves to the G1 level within five years of lease execution. Officials said diversion of the forest land is unavoidable as around 90 per cent of the iron ore deposit lies within forest land. The Forest department has argued that the project is site-specific and essential to meet rising demand from the steel sector. “The presence of mineral is location-specific and the majority of the ore body falls within forest land. There is no viable alternative. The forest area involved in this lease does not include any national park, wildlife sanctuary, biosphere reserve, tiger reserve or elephant reserve,” the proposal stated. The project has already secured terms of reference from the State Environment Impact Assessment Authority (SEIAA) and consent to establish from the State Pollution Control Board. The mining plan, including a progressive mine closure plan, has been approved by the Indian Bureau of Mines (IBM). The proposal has also been cleared at the state-level project screening committee and uploaded on the PARIVESH 2.0 portal for forest clearance processing. However, the diversion will be subject to payment of net present value (NPV) for forest land and other statutory compliances upon Stage-I approval from the Centre, sources said. The project site includes habitation in forest land, with 43 houses identified in the proposed lease area, including two belonging to Forest Rights Act (FRA) title holders. The state government has informed the Centre that a detailed resettlement and rehabilitation (R&R) plan will be submitted by the company prior to project execution. With an estimated project cost of Rs 125 crore, the mine is expected to generate direct employment for around 100 people and indirect jobs for another 150, largely benefiting local communities. Emphasising that the project will enhance revenue through royalty, District Mineral Foundation (DMF) contributions and other levies, while strengthening raw material security for the domestic steel industry, director (environment) cum special secretary of the Forest, Environment and Climate Change K S Pradeep has urged the assistant inspector general of forests (FC), MoEF&CC, for grant of lease over the forest land. ### Related Stocks - [SAUD.UK](https://longbridge.com/en/quote/SAUD.UK.md) ## Related News & Research - [Buy Tata Steel; target of Rs 250: Motilal Oswal](https://longbridge.com/en/news/287040557.md) - [Indian Shares Likely To Drift Lower On Bond Market Jitters](https://longbridge.com/en/news/286994741.md) - [UP govt plans nearly ₹600 crore investment to strengthen AI ecosystem](https://longbridge.com/en/news/287208963.md) - [IPL 2026: Kuldip, Gleeson named injury replacements for Khaleel-Thushara](https://longbridge.com/en/news/286585285.md) - [Rio Tinto Achieves Eight Billion-Ton Pilbara Iron Ore Shipment Milestone](https://longbridge.com/en/news/286970135.md)